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Treasury Sells $35 Billion In 5 Year Paper To Solid Demand
If yesterday's 2 Year Auction showed a substantial pick up in Bids to Cover in recent months, then today's 5 Year, while sold in terms of end demand with the high yield pricing at 1.340%, through the 1.344% when issued, did not confirm this trend for at least the next longer maturity. The sale of $35 billion in 5 Years came at a 2.61 Bid to Cover, below last month's 2.65, and below the TTM average of 2.69. More importantly as can be seen on the chart below, the trendline is lower if one sets aside such "one-time" spooking events as debt ceilings and government shutdowns. Indirect demand picked up notably, taking down precisely 50% of the auction, leaving 10.8% to Directs, and just 39.2% to Dealers: the lowest PD takedown since the 37.8% in July. Overall, nothing to write home about as total US debt, contrary to all fabulations about a plunging deficit, continues on its relentless ramp every higher, at last check printing over $17.2 trillion.
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It's Black Friday everyday at the Treasury.
<Until it's not.>
And everyone thought there was a bubble. There's no bubble. It's a balloon.
Blimp. It's a fricking blimp. A hindenberg ready to go up in flames. Oh the humanity, when the takers get angry at the providers b/c their free lunches, SS, medicare, medicaid, health insurance, section 8, etc... all ceases.
But what is the "intrinsic value" of a promise from a bankrupt thief?
its a war I want to get on with - bring it
when all there is is a bubble, then its just business as usual
$35 billion, that's a lot of Obamaphones.
correction: Ferraris
nothing like B-52's in China's "New Territory" to shout out a wake up call.
rock robster !
"its just a game - its only a game"
Whatever amount, $35 billion or however much, just gets constantly met with 'solid demand'...yea sure whatever.
When your enemy is making a mistake, help them.